Free Investment agreement term sheet Template for New Zealand

An Investment agreement term sheet outlines the key points of a proposed investment deal between parties in New Zealand. It's like a snapshot of the most important parts of the investment - including how much money is being invested, what the investor gets in return, and any special conditions that need to be met.

While not legally binding on its own (except for specific clauses like confidentiality), term sheets help both sides understand the deal structure before lawyers draft the final investment agreement. They're particularly common in venture capital and angel investing, where they speed up negotiations by getting everyone on the same page about major terms early in the process.

Use an Investment agreement term sheet when you're getting close to securing investment funding but need to nail down the key details first. It's especially valuable in startup funding rounds, business expansions, or when bringing on new shareholders - any situation where you need to outline investment terms before spending time and money on full legal documentation.

The term sheet becomes essential once you've had promising initial talks with potential investors and want to move forward. By documenting the main points early - like valuation, investment amount, and key rights - you save time and avoid misunderstandings later. Many New Zealand venture capital firms and angel investors expect to see a term sheet before proceeding with detailed due diligence.

• Simple investment terms focus on basic elements like investment amount, company valuation, and share percentages - common in angel investing and early-stage startups
• Venture capital term sheets add sophisticated provisions around voting rights, board seats, and liquidation preferences
• Convertible note term sheets outline debt that converts to equity, including conversion triggers and discounts
• Strategic investment term sheets include commercial agreements alongside investment terms
• Growth capital term sheets typically involve larger amounts and more complex governance rights

• Investors: Venture capitalists, angel investors, or investment firms who provide the capital and typically initiate the term sheet process
• Company founders: Business owners or entrepreneurs seeking investment who review and negotiate the key terms
• Corporate lawyers: Draft and review the term sheet to ensure it aligns with New Zealand securities law and protects their client's interests
• Board members: Review and approve the term sheet before it progresses to final documentation
• Investment advisors: Help negotiate terms and provide guidance on market standards for both parties

• Company details: Gather accurate business information, including registration number, shareholding structure, and current valuation
• Investment specifics: Determine investment amount, share price, and type of securities being offered
• Key rights: Define voting rights, board representation, and any special privileges for investors
• Protection mechanisms: Outline anti-dilution provisions, pre-emptive rights, and drag-along/tag-along rights
• Timeline details: Set clear milestones for due diligence, documentation, and deal closing
• Final review: Use our platform to generate a comprehensive term sheet that includes all essential elements under NZ law

• Investment terms: Clear statement of investment amount, share price, and type of securities offered
• Company information: Legal name, registration details, and current capitalization table
• Investor rights: Voting rights, board seats, and information access provisions
• Protection clauses: Anti-dilution, pre-emptive rights, and exit provisions
• Confidentiality: Binding confidentiality and exclusivity provisions
• Conditions precedent: Key requirements before closing, including due diligence and regulatory approvals
• Governing law: Explicit statement that New Zealand law applies

A term sheet differs significantly from a full Investment Agreement in several key ways. While both documents deal with investment arrangements, they serve distinct purposes in the investment process.

• Legal binding: Term sheets are mostly non-binding (except for confidentiality clauses), while Investment Agreements are fully binding legal contracts
• Detail level: Term sheets provide a high-level outline of key terms, while Investment Agreements contain comprehensive legal provisions and precise obligations
• Timing: Term sheets come first as negotiation tools, while Investment Agreements are the final documentation that closes the deal
• Documentation: Term sheets are typically 5-10 pages, while Investment Agreements can run 50+ pages with extensive schedules and exhibits
• Purpose: Term sheets align parties on major points early, while Investment Agreements create enforceable legal rights and obligations